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Durban Business Fair
Economic Impact Assessment
Study – 2012 Presentation of
Results
27 March 2013
Agenda
Background 3 - 4
Objectives & Methodology 5 - 6
Business results 7 - 54
Visitors results 55 - 70
Conclusions 71
Recommendations 72
Background
• The Durban Business Fair has been running for the 14th year in 2012 under the auspices of the eThekwini Municipality’s business support, tourism and
market unit
• The fair is earmarked for Small, Micro to Medium Enterprises
• Took four consecutive days from the 18th to the 21st of September 2012
• Attracted exhibitors from KZN, the rest of South Africa as well as regional countries
• The event was two pronged,
The Durban Business Conference – mentor groups , financiers and stakeholders meet to share with exhibitors
The Durban Business Fair where the exhibitors showcase their wares to the public
3
Background
Objectives of the fair :
• To affirm eThekwini Municipality’s commitment to SMMEs promotion and development
• To showcase high quality goods and services produced by SMMEs in the eThekwini region
• To build a common understanding on issues affecting business operations.
• To provide a networking opportunity for SMME’s and national, provincial and local support agencies and structures.
• To capacitate and prepare SMME’s for exposure in various ways of marketing and selling their products and services
4
Objectives
Research objectives
• To ascertain the demographics and business profiles of the Exhibitors and visitors.
• To determine the volume of people attending the fair.
• To evaluate the perception and satisfaction of the Exhibitors and Visitors in relation to the different aspects of the fair such as location of the event,
organizers of the event, conference and topics covered in the workshops, to mention a few.
• To ascertain the Exhibitors and Visitors’ knowledge of the SMME Fair and the main objectives for participating/attending the fair.
• To assess the issues pertaining to the marketing/advertising of the event and
• To determine the economic impact of the fair.
5
Methodology: Who did we speak to
6
• Computer Assisted Telephone Interviews
• n=100 Exhibitors
Phase 1
• Face to Face aisle interviews at the Fair
• n=100 Exhibitors
• n=200 Visitors
Phase 2 • Computer Assisted Telephone Interviews
• n=100 Exhibitors
• n=200 Visitors
Phase 3
• Random selection of companies was carried out by arranging companies by sector and then every 5th company in the list selected. Process repeated until sample size reached.
Pre – fair interviews Post – fair interviews
During – fair interviews
Exhibitors before the fair
Exhibitors demographics
8
3%
23%
51%
23%
61%
2%
26%
11%
50% 50%
16 - 24years
25 - 34years
35 - 49years
50+ years Black Coloured Indian White Male Female
Age Race Gender
Demographics
• The ages of the interviewed business representatives were between 35 and 49 years. It is interesting to note that the age structure is in line
with the natural economically active population of the country.
• The race profile also mirrors the province’s structure that is predominantly black, with 26% Indians, 11% whites and 2% Coloureds. The high
number of Black exhibitors could also be an indication of the increasing effect of the government’s BEE initiative.
• Importantly also there was an equal distribution by gender, compared to the gender split of visitors, which were more male.
n = 115
Ownership
9
95%
5%
Ownership
Privately owned Government
• The majority of exhibitors interviewed before the fair were private businesses.
• Although the fair is organised by the municipality, it is interesting to note that the government did not overshadow the
target beneficiaries.
• The fair can be said to have fully exposed the exhibiting private businesses, giving them the opportunity to exhibit their
products and services and to network.
n = 115
In which sector does your business fall under?
Size of company
10
58%
30%
6% 2% 4%
1 - 5 people 6 -20 people 21-50 people 51- 200 people 200 + people
Company Employee Workforce
• Most businesses employed 1-5 people, 58%, confirming findings by Dr Neil Rankin of Wits University who
published that 73% of workers in South Africa are employed by firms with less than 50 employees and that 45%
of all employed people work in firms with less than 10 employees.
• As will be seen later some of these companies employed additional staff for the fair and some of these positions
were temporary and some were permanent.
• It is clear that the show attracts mainly small business owners. This is in line with the objective of promoting
SMME’s.
n = 115
How many people are employed by your company/business?
Branches outside KZN
11
19%
81%
Do you have branches outside KZN?
Yes
No
• 81% of the companies that took part in the survey had offices in KZN only and 19% had branches in KZN as well as in other provinces.
• The most interesting group are those who have offices in other provinces as well. These businesses face a broader competitive environment and
they get exposed to more and diverse business ideas.
• These businesses should be encouraged to interact with local businesses as the challenges, solutions and marketing initiatives learnt in other
provinces can be implemented in KZN for the benefit of the other local businesses.
n = 115
Do you have other branches outside KZN
Accommodation
12
91%
6% 3% 6% 3%
90%
1-5 6-10 11+ All renting Some renting All not renting
Team size Accomodation
Team & accomodation
• The teams sent by their companies to attend the fair were mostly small with 5 or less members, and only a few were renting
accommodation. These made up 10% of the exhibitors’ that took part in the survey.
• This shows that the accommodation industry did not benefit much from the Fair.
• Although the accommodation sector did not benefit much, the food and catering industry did benefit from the fair.
n = 115
How many staff members in your team will be at the Durban Business Fair and what business accommodation will be available for them?
Why exhibit at the fair
13
Why visit the Durban Business Fair?
Generate awareness of our products 49%
Generate business leads & contacts 28%
To compliment direct selling efforts 22%
To provide information on new products 21%
Establish partnerships 17%
To provide information on existing products 16%
Improve our corporate image 13%
Gain business ideas from business 10%
An opportunity for a casual interaction with my clients 3%
To handle customer complaints 2%
• The main reason many businesses exhibited at the fair, was to increase awareness.
• This was followed by those who were pursuing marketing initiatives such as generating leads/contacts, selling products and launching new products.
• Businesses should be encouraged to prepare fully for the fair in terms of networking, marketing and learning more about their clients.
• The fair can also be used as a forum for getting feedback from customers or potential customers and to fine tune product or service delivery.
What are the reasons you are participating at the Durban Business Fair in 2012?
Expectations
14
7.56.8 6.8
5.2
58% 47% 43% 33%
32%34% 41%
19%
10% 19% 17%
48%
New customer leads Increase in direct sales National businessnetworking
International businessnetworking
Low(1-4)
Medium(5-7)
High(8 -10)
• The exhibitors’ highest expectation was to get new customer leads and most did not expect to network with any international businesses.
• The first phase of this study should be conducted well in time to give the municipality time to understand what the exhibitors expect to get from the fair, this will allow both parties to negotiate agendas and to approach the fair on the same page.
• The graph gauges exhibitors expectations on several statements.
How do you expect your business to grow after the Durban Business Fair
n = 115
Overall average = 6.6Average (1-10)
Rating the offering
64%
63%
60%
63%
61%
23%
24%
23%
22%
23%
7%
7%
10%
10%
8%
7%
6%
8%
5%
9%
Responsiveness to my queries
Understanding of my businessneeds/requirements
Builds trust with me as a valued exhibitor
Treat me as a long term businesspartner/customer
Keeps promises made to me
Service
High(8-10) Medium(5 - 7) Low(1-4) Don't know
Overall Mean score = 7.7
70%
66%
60%
65%
58%
60%
19%
19%
19%
21%
23%
23%
7%
10%
10%
7%
10%
12%
4%
5%
10%
7%
10%
5%
Communication of the Durban Businessfair strategic focus & direction
Explaining of exhibition processes &procedures
Timeous notification of plannedinterruptions to services
Clarity of communication channels withus as exhibitors
Communication of their price schedulesto exhibitors
Frequency of pro-active contact with meas their exhibitor
Communication
High(8-10) Medium(5 - 7) Low(1-4) Don't know
Overall Mean score = 7.8
To what extent does the Durban Business Fair meet, or fall short of your expectations
n = 115
7.9
7.9
7.8
8.0
7.7
7.5
7.9
7.7
7.6
7.6
7.7
• Communication aspects were generally well rated • Service is also well rated
Rating the offering
75%
60%
58%
49%
51%
16%
27%
22%
30%
22%
5%
7%
10%
7%
12%
4%
6%
10%
15%
15%
Convenience of location of theDurban Business Fair
Applies world-class technologies(lighting, connectivity etc.)
Safety/security at the fair
Adequate amenities
Adequate & secure parking
Location & Facilities
High(8-10) Medium(5 - 7) Low(1-4) Don't know
Overall Mean score = 7.8
64%
61%
71%
19%
21%
15%
9%
10%
9%
9%
9%
5%
Attitude of front line staff(telephone operator,
secretaries, etc.)
Competent staff
Professionalism
Staff
High(8-10) Medium(5 - 7) Low(1-4) Don't know
Overall Mean score = 7.9
n = 115
To what extent does the Durban Business Fair meet, or fall short of your expectations
8.4
7.8
7.7
7.6
7.5
• There were no issues pre-fair of the facilities, although some respondents were not able to answer the questions regarding parking, amenities and facilities
• Staff were highly rated
7.8
7.9
8.1
Rating the price
18
12% 15%
60%
9%4%
Very high price Fairly high price Average price Fairly low price Very low price
The price for exhibiting at the Durban Business Fair
• About 27% of the respondents felt that the price paid for exhibiting at the fair is high.
• Our interpretation is that the price is about right, with over 70% saying it is average or low. This type of direct question will
usually elicit some respondents ‘lowballing’, i.e. claiming that the price is too high. We do not believe that the number claiming
to be dissatisfied with the price is a concern or out of line.
Thinking about the Durban Business Fair, how would you rate the price you pay for exhibiting?
n = 115
Rating the fair
19
71%
68%
66%
52%
71%
17%
22%
23%
27%
20%
10%
8%
9%
15%
8%
1%
3%
2%
6%
1%
The fair provides a platform to advertise and network
The fair promotes broad based black economic empowerment
The fair creates jobs through promoting business growth
The fair promotes the upliftment of women and people withdisabilities
The fair promotes small, micro and medium enterprises
To what extent do you agree or disagree with the following statements?
High (8 - 10) Medium (5 - 7) Low (1 - 4) Don't know
• It was widely believed that the fair is having a significant effect in promoting SMMEs and also BEE.
• There were still doubts on whether enough is being done to uplift the livelihoods of historically disadvantaged individuals like women and people with disabilities.
To what extent do you agree or disagree with the following statements
n = 115
8.4
7.8
7.7
7.6
7.5
Problems at the fair
20
9%91%
Have you encountered any problem at Fair?
Yes No
1%
8%
Was this problem resolved ?
Yes No
• Most did not have any problems at the fair
• Of the 9% who did, 8% said the problem was not satisfactorily resolved
Have you experienced any significant problems with the Durban Business Fair in the past? Was the problem satisfactorily resolved?
n = 115• big space for containers
• she didnt get food but she paid for durban fair
• name of my company spelled wrongly
• parking distance
• pay in the parking, why get one ticket for the gala, instead of two
• The stand was far from the crowd
Is the fair a valuable link
21
93%
7%
The Durban Business Fair, a valuable link to business functioning?
Yes
No
Respondents all above 35 years, 3 females, all private owned
companies , 7 first timers at the 2012 Fair.
Verbatim indicate that it is too early to say it is a valuable link
• 93% said the business fair was a valuable link to their business and 7% said it was not a valuable link.
• The value derived from the fair such as networking and marketing should be reinforced to keep the exhibitors satisfied and the problems encountered at the fair should be minimised to reduce levels of dissatisfaction.
• All possible efforts should be made to attract the right exhibitors and the right visitors in order for the businesses to get value for their money, the municipality should follow up on the exhibitors to see what else should be done for them to benefit from the fair.
• Eventually the exhibitors should be able to pin-point the benefits derived from the fair in terms of awareness and business growth.
• They should be able to give the number of people that visited their stands and the number of business leads generated, this will make them value the money and time invested at the fair.
Is the Durban Business Fair a valuable link in your business functioning?
n = 115
Attending the conference
22
75%
25%
Are you attending this year's business conference?
Yes No
40%
60%
Did you attend the conference?
Yes No
• Although 75% had said they will attend the conference, only 60% eventually attended.
• The conference plays an integral part of business growth and support. Businesses should be given more information on the benefits of the conference and its value for money.
• Regarding those who attended they should be informed about the benefits of networking and how to network.
• An analysis should also be made to understand the profile of those who would have confirmed that they will attend and then the municipality should use this analysis to invite suitable speakers which will make the conference a ‘can’t miss event’ and at least attract part of the 40% that did not attend.
n = 115
Exhibitors during the Fair
Rating the conference
24
Conference rating
Determining the attendees expectations from the conference plays a vital role in the programme or agenda design and it informs the municipality on what information to provide. This analysis also helps to determine if the people’s expectations are compatible with the objectives of the conference and informs the municipality if it should consider educating the potential attendees about the conference.
7.1 7.2 7.37.6
6.7
7.3 7.5
Please rate the conference according to the attributes provided
n = 39
Those who attended the conference
8% 8% 10% 8% 13% 8% 8%
49%38% 36% 36%
38%38% 36%
44%54% 54% 56% 49% 54% 56%
The conferencewas well
organised
The staff at theconference
werewelcoming
The conferencewas
informative
The presenterswere
professional
The presenterswere relevantto businesses
like mine
I understoodthe theme of
the conference
I was able tonetwork at the
conference
High (8 - 10)
Medium (5 - 7)
Low ( 1- 4)
While about 1 in 2 rated the conference highly, quite a number gave it a medium to low rating. This indicates that there is room for improvement.
The organisation and relevancy to the exhibitors’ businesses had the lowest ratings
Preparedness to recommend
26
17%
5%
7%
38%
29%
5%
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
Not sure
I will advise other businesses to attend the conference next year
• Although 67% said they would recommend the conference to other people, 33% said they would not recommend or they were not sure. Again this indicates that the conference was well received by the majority, but there was quite a large contingent who did not find it useful.
• The municipality should consider improving on assessing the presentations, they should not be seen to be targeting medium businesses only but they should also meet the expectations of small and micro businesses.
• The organisation of the conference should be further fine -tuned and the staff should be more welcoming.
• Another area that needs attention is networking as some businesses were not able to network, as they were afraid, or were unable to approach the people they would have liked to talk to.
I will advise other businesses to attend the conference next year?
n = 115
Recommend 67%
Setting up at the fair
27
83%
17%
0%
Half a day
One full day
Two days or more
Time taken to set up
• Most exhibitors (83%) required half a day to set up and 17% required a full day.
• Our observation was that this time was possibly too short and not enough to allow the exhibitors to be creative and give the fair more life.
• Most stands were too simple consisting of a table and chairs, a set up that barely attracts people to the stand.
• To exude the seriousness of the exhibition and to make the fair an experience ,businesses should be encouraged to decorate their stands and if possible there should be a prize for the best stand.
• Eye catching stands attract people’s attention and potential clients judge the product/service by the way the business has presented itself.
Please tell me how long it took you to move into your stand and set up to your satisfaction?
n = 115
Exhibitors’ Rating of the Fair
28
7.27.4
7.67.7 7.9
49% 48%60% 57% 63%
42% 36%26% 38% 32%
9% 15% 13% 4% 5%
The fair met myexpectations
The staff at the fairwere professional in
helping me set up
The security meetsmy expectations
The staff were readyfor the fair
The staff werewelcoming when I
came for theexhibition
Rating
Low (1-4)
Medium (5-7)
High(8-10)
• The highest scores were awarded to the staff for welcoming exhibitors and people felt that they were ready for the fair.
• Many exhibitors rated the professionalism of the staff as medium to low and the fair was not meeting expectations for quite anumber of exhibitors
• Although 60% said they were happy with the security ,there is however room for improvement as 40% rated it medium to low.
• Police visibility should be increased. This should be in the form of SAPS officers/ metro police and security guards, which willdiscourage any individuals with ulterior motives and make the exhibitors feel much at ease.
• As suggested before the, exhibitors expectations should be established well in time to enable the municipality to plan the fair accordingly.
How would you rate the fair?
n = 115
Networking
29
89%
11%
Have you been able to network at the Fair?
Yes
No
56%
11%
33% 36%45%
18%
I went to theirstand
Someone elseintroduced me
They came to mystand
They were busywith other people
I was too busy I was afraid to talkto them
Yes No
• Eighty nine percent of exhibitors interviewed at the Durban Business Fair were able to network during the period of the fair.
• A majority of respondents, 56% networked by going to the stand of others
• Those who did not network said they were too busy to network 45%.
• Networking is a skill that one can learn, the municipality should consider organising a workshop that will introduce the SMMEs
to networking, develop understanding of its importance and ways of networking.
• An environment should be prepared to facilitate networking, for example , through creating a section where exhibitors can go
and get a free sandwich or some refreshments courtesy of the municipality.
Have you been able to network at the fair. What did you do to talk to these people. What was the draw back?
n = 115
Base: Those answering Yes Base: Those answering No
Evaluating the type of visitors
30
72%
28%
Are you happy with the type of people who visited your stand?
Yes
No
• 72% of the exhibitors were happy with the type of visitors. However 28% were not happy with the type of visitors;
• The municipality should communicate to the exhibitors what the fair entails.
• This will guide expectations. The municipality should also increase understanding of the exhibitors business and their target market in order to determine the correct channel of reaching this market for the purpose of the fair.
• It is important that the fair attracts the right people, if not so the exhibitors will feel like they have wasted their money.
• They should meet businesses like theirs or with whom they can share ideas, make partnerships and possibly attract people or businesses who can buy their products or use their services.
Are you happy with the number and type of people who have visited your exhibition centre so far?
n = 115
Plans for next year
31
3% 10%
87%
I will not considerexhibiting next year
I am not sure if I willexhibit next year
I will exhibit next year
On whether they will exhibit next year
• 87% expressed satisfaction with the fair and said they would be exhibiting next year
• Only 13% said they were not sure or they would not be exhibiting next year.
• Efforts should be made to improve on service delivery to keep the existing exhibitors and they should see the value for
money.
• An after fair gala for exhibitors would also help foster networking.
• The municipality should continuously find out how they can make the fair an investment rather than a loss to the
enterprises.
Which of the following is true about your plans for next year regarding the business fair
n = 115
Likes and dislikes
32
13%
44% 47%42%
35%
56%
17%
Excellententertainment
A variety ofexhibitors
Exhibitors andvisitors that are
ideal to mybusiness
The fair was wellset up
I got informationthat is relevantto my business
It is a platformfor networking
Good security
What did you like most about the 2012 fair?
9% 7%11%
6%1%
33%
1% 3%
46%
Entertainment Type ofexhibitors /
visitors
Set up and theway the event
was
Informationdisseminated
Security Parking Publicamenities
Other (specify) Nothing
What they disliked about the 2012 Fair?
Considering this current fair what do you like most, what do you dislike most?
n = 93
• Most respondents liked the fact that the fair gave them an opportunity to talk to other businesses especially businesses that are ideal to their businesses.
• They were also happy with the number and variety of exhibitors.
• Although 46% disliked nothing about the fair, 33% had a problem with parking, (the price and the distance from the fair especially having to cross a busy road or to use the flyover).
• A few also had a problem with entertainment since some visitors were travelling with children.
• The municipality should also consider some touch screen information centres where exhibitors and the visitors can go and get information about products or services of the suppliers, including their contact details.
• The fair should bring in new technology and provide a lifetime experience.
Problems at the fair
33
17%
83%
Have you experienced any significant problems at the fair?
Yes
No
33%
67%
Is there anyone attending to the problem?
Yes
No
• The majority of exhibitors interviewed, 83% did not experience significant problems at the 2012 Durban Business Fair.
• Of the seventeen percent who encountered problems, the reasons are mentioned in the box
• For 2 out of 3 no one had attended to their problem at the time of the interview.
Have you experienced any significant problems with the Durban Business Fair. Is there anyone attending to the problem?
n = 93
• helping offloading goods• location was not ideal• my phone was stolen• not much information given to employees• no parking , not enough trolleys• Parking• poor management and rude staff• rebuild the buildings for the heavy rain• some sponsors are very rude• the building was leaking during the heavy rains• the final day is very slow, someone tried stealing• the visitors are not enough• too many empty stands + poor quality stands
Marketing strategy
34
83%
17%
Do they have a marketing strategy?
Yes
No
• A majority of the exhibitors have a marketing strategy, 13% however do not have or are not aware that they have one, as their strategy could be an informal one.
• This could be an opportunity for the municipality to consider organising a workshop on marketing, covering methods of marketing, what, where and how to market.
• This will empower the SMMEs, and encourage them to develop more formal and robust businesses .
Do you have a marketing strategy in place?
n = 93
Marketing
35
4%
5%
5%
8%
9%
10%
11%
14%
15%
16%
16%
18%
25%
30%
35%
51%
53%
53%
54%
Calenders
Local Restruarent receipts
Yellow pages/white pages
Posters
Billboards
Magazines
Local newspapers ads (e.g. Isole
Radio
Business Newspaper
Pamphlets
Business or Trade fairs
Brochures
Internet
Word of Mouth
Flyers
Business Cards
Own web site
Marketing vehicles
• Although respondents use a variety of channels to market their
business, the most popularly used channels are flyers, own website,
business cards and word of mouth.
• The internet also came up strongly (possibly Gumtree). The other
conventional methods such as the yellow pages, billboards, local
newspapers and radio are used by relatively few companies, possibly
due to the high costs.
Which of the following means do you currently use to reach your target market?
n = 115
Exhibitors after the Fair
Benefits
40
Networking Marketing Technology Knowledge
44%
57%
13%
30%
What benefits did you derive from the fair
• Most exhibitors were able to market their business, 57% said they benefited from marketing, 44% were able to network and 30% gained
knowledge.
• A few people said they learnt a lot in IT. Enterprises should be encouraged to appreciate the importance of IT and invest in it.
What benefits did you derive from the Durban Business Fair
n = 115
Employment created
41
17%
83%
Personnel hired for the Fair
Yes
No
15
2
Temporary Permanent
Type of employment
1%
13%
1%
7%
Audio/visual
Marketing/promotion
IT
Logistics
Services outsourced
Did you hire new personnel for the Durban Business Fair?
n = 100
Average cost
R1378
R500
R1907
R200
17 of the businesses sampled employed people for the fair
2 of the 17 became permanent employees
Not many outsourced services, with marketing being the most frequent service outsourced with 13%, and an average spend of under R2000
Other areas visited
42
9%
5%
6%
Shopping malls
Beach
Shaka marine
Other areas visited
11%
3%
Clothes & accessories
Art & craft items
Did the respondent spend on any of the following?
• Not many exhibitors visited other areas during the fair, with 9% visiting shopping malls
• 11% spent money on clothes and accessories
Did you visit any places of entertainment during the Durban Business Fair?
n = 115
Revenue generated
43
Amount spent by
100 exhibitors
(Rands)
Extrapolated to 287
exhibitors
(Rands)
Accommodation 2600 7462
Food & Beverage 2600 7462
Petrol 7450 21382
Public transport 900 2583
Other 500 1435
Public transport 900 2583
Audio visual 500 1435
Marketing promotions 24800 71176
IT 200 574
Logistics & transport 9650 27696
Beach 1920 5510
Shopping malls 3200 9184
uShaka 1105 3171
Clothes 3600 10332
Arts & crafts 1200 3444
TOTAL 61125 175429
Evaluating the fair
44
3%
6%
10%
3%
9%
11%
19%
25%
23%
34%
26%
27%
78%
69%
67%
63%
65%
62%
Convenience of location
Communication
Explaining the exhibition process
Understanding my business
Long term partner
Build trust
Evaluating the Municipality (%)
Does not meet expectations(1-4)
Neutral(5-7)
Exceeds expectations(8-10)
• Generally respondents said the fair met most of their expectations. These are strengths that need to be reinforced.
• The location, communication and administrative aspects were most positively perceived.
• Building trust by understanding the exhibitors business and becoming a long term partner to the exhibitor’s business are less positively perceived, but nevertheless at satisfactorily levels, all averaging 7.5 or more out of 10
To what extent does the Durban Business Fair meet, or fall short of your expectations
n = 100
8.4
8.0
8.1
7.8
7.8
7.5
Average (1-10)
Have they contacted the clients they met at the fair
45
29%
71%
Have they contacted clients they met at the Fair
Yes No
2%
10%
13%
4%
Went to their offices
I phoned them
They phoned me
Other
How they contacted them
• Thirty days after the fair it was noted that 29% followed up on their potential clients and 71% had not yet tried to contact
potential clients.
• 15% were phoned by the customers (15%), with the remainder of 14% contacting the customer
Have you been able to contact some of the people you met at the fair?
n = 100
Have they received any orders
46
20%
80%
Have they received orders from business contacts met at the fair
Yes
No
• 20% of businesses had generated new business from the fair within the first 30 days after the fair.
• It is possible that a period of one month after the fair is too short to assess the impact.
• The average estimated costs of business generated from the fair so far was R20 000
Have you received any orders from the people you met at the fair?
Stakeholders visited
47
63%
30%
6%
3%
3%
1%
None
SEDA
APEX
Ntsika
IDC
Khula
Stakeholders visited
• Although a majority of exhibitors did not visit any stakeholders there are some who did visit them and the most visited stakeholder was SEDA 30% followed at a distance by APEX 6%.
• These stakeholders play an important role in empowering businesses, providing business development & support services and promoting economic growth and industrial development.
• The municipality should consider preparing abridged articles on various stakeholders
• If budget permits a touch screen solution at the fair would also help individuals get more information about stakeholders without going to talk to them in person.
• A link to the stakeholders websites should be considered in the municipality’s business support part of the website, to make them easily accessible to the SMMEs .
Which of the following stakeholders did you visit?
Second recall interview with exhibitors
48
• At the end of February 2013, approximately 5 months after the Durban Fair, exhibitors were phoned back and interviewed.
• The objective was to establish the economic impact, a few months down the line, of the Durban Fair on the businesses of exhibitors in
terms of new customer contacts made and sales revenue generated as a direct result of the fair.
• 34 exhibitors were interviewed at this stage.
• Others were difficult to contact or not willing or available to be interviewed. However the 34 exhibitors interviewed are able to provide
a perspective of the fair and how it has impacted on their businesses.
New business contacts made as a result of the fair
49
21%18%
24%
15% 15%
9%
3-9 10-15 20-30 40-60 100-180 200-300
New contacts madeAverage number = 56
Median = 20
• All 34 exhibitors interviewed in this recall interview said that they had made new business contacts at the fair.
• On average the exhibitors made 56 new contacts at the fair and the median number of contacts made is 20.
• 38% made between 3 and 15 new contacts, 38% made 20 to 60 contacts and 24% made 100 or more contacts. Clearly many exhibitors
made quite a lot of new business contacts, which would be a primary reason for them to exhibit, and to return as exhibitors in the
future.
N=34
Number contacted after the fair
50
• The exhibitors’ follow up with contacts after the fair is quite good.
• 55% claim to have contacted between 1 and 15 people after the fair and an additional 41% contacted 20 or more people.
• The exhibitors contacted on average 38 people after the fair, with the median number being 15. This translates to an average
conversion rate of 38/56 = 68% i.e. the ratio of those contacted after the fair to the number of contacts made at the fair
3%
26%29%
21%
9%3%
9%
0 1-9 10-15 20-30 40-60 100-180 200-300
Number contacted after the fairAverage number = 38
Median = 15
N=34
Number of customers that contacted exhibitors
51
• The number of potential customers that got in contact themselves with the exhibitors after the fair is shown in the chart
• Most exhibitors (59%) say that between 1 and 10 people contacted them. Over a quarter had 20 to 60 contacted them. One exhibitor
(3%) claims that 200 people contacted him.
• One can view these figures as a positive result, as the fair is having a definite impact on the business or the potential for new business
to be generated by exhibitors, and achieves the objective for exhibitors to generate new sales opportunities.
12%
38%
21%15%
12%
3%
None 1-5 6-10 20-30 50-60 200
Number that contacted the exhibitorMedian = 6
N=34
Number of contacts that have become customers
52
• We are able to evaluate whether business contacts made at the fair translates into actual new business for the exhibitors.
• Just over one third of exhibitors have as yet not gained new customers as a direct result of the fair.
• Quite a lot (41%) have made between 1 and 9 new customers that have generated additional sales for their businesses.
• For these exhibitors the fair can therefore be regarded as a success for their businesses.
• Almost one quarter (24%) have generated 10 or more new customers, which one can regard as a very successful outcome of the fair.
35%41%
9%6%
9%
0 1-9 10-15 20-30 100-150
Number of contacts that have become customersMedian = 4.5
N=34
Sales increases experienced by exhibitors
53
• Exhibitors were asked for the actual increase in sales revenue that their businesses experienced as a result of the fair. Most answered
in terms of a percentage increase in turnover experienced.
• Many of the exhibitors (42%) say that the fair has not translated into actual additional sales revenue for their businesses
• The remaining 58% have experienced various levels of increases in sales.
• Quite a large percentage (29%) claim to have experienced over a 25% growth in sales.
• Two further exhibitors chose to provide their sales increase in Rand terms, with one reporting a R500 increase in sales and the other an
R80 000 increase in sales.
• If these claims are true then this indicates that the fair has had a differential effect depending on the exhibitor and the products
displayed, but that for some exhibitors it has had a very positive effect on their businesses.
42%
10% 13% 13% 16%
0 1%-5% 15%-20% 25%-40% 50%-300%
Increase in sales revenue
Increase in sales revenue
N=34
Visitors
Visitors attendance figures
Day Attendance
Friday 3, 096
Saturday 2,857
Sunday 3,175
Monday 4,095
Total 13,223
Demographics
57
40%
60%
Visitors
Business
Individual
• The visitors to the Durban Business fair 2012 consisted of those representing businesses (40%) and individuals who attended on a
personal basis (60%).
• The importance of the fair to businesses in particular is illustrated by the fact that 2 out of 5 visitors to the fair are people representing
businesses
• It also emerged that 55% of these companies were registered and 45% were not registered.
• As most of these companies are only 1 to 5 years old they are within their growth stage when they need more support in networking,
marketing and selling their products and services.
Did you visit the business fair as an individual or on business?
n = 201
Demographics
58
23%
32%
32%
13%
Age
16-24years
25-34years
35-49years
50+years
• There was generally a fair distribution of visitors by age and most of them were within the economically active age group. 23%
were between 16 and 24 years, 64% were within the 25-49 years and 13% were over 50 years.
• It is worth noting that some of these visitors were travelling with young sisters/brothers who were below 16 years old, which
could mean a promising future for the fair and possibly a development of a business mindset at a younger age.
n = 201
Into which age group do you fall?
Demographics
59
77%
2%
21%
Race
Black
Coloured
Indian
57%43%
Gender
Male
Female
• The majority of visitors of the 2012 Durban Business Fair were black 77%, while 21% of the visitors were Indians and 2% coloured.
• Although according to the natural fall of the population, blacks form a larger part of the population, this big number could also show an increasing
interest in business and the government’s Black Economic Empowerment (BEE) initiative.
• There was also a slightly higher male base, which could possibly show a gap that more effort still needs to be put in to encourage and promote
women to venture into business as they form part of the previously disadvantaged population in business.
Record race & gender. Ask only if you are not sure?
n = 201
Visitors habits
60
47%53%
Have you visited the Durban Business Fair in the previous
years?
Yes
No
9%
19%
9%
3%
3%
1%
1%
1
2
3
4
5
6
9-10
If yes, how many times (number of years)Mode = 2 years
• Many visitors (47%) had been to the fair in previous years, a positive result as it indicates that many visitors found the fair useful in previous years and chose to return in 2012.
• 9% attested that this was their second year at the Durban Business Fair, 19% said it was their third year followed by those who said it was their fourth year.
• It is worth noting that there are visitors who have come to the Fair for the past five to even ten years.
• Based on the information above it would be advisable to continue to, deliver a premium service and to measure visitors expectations and satisfaction with the fair.
Have you ever been to the fair in the past? If Yes how many times?
n = 201
Visitors habits
61
43 45
102
I am on my own Group of 2 - 3 people Group 4 - 5 people Group of 5 people ormore
Please tell me the number of people you are travelling with?
43
28 25
2 2
I am on my own I am travellingwith my
colleagues
I am travellingwith my friends
I am travellingwith membersof my family
We are travellingas a school
Please describe the people you are travelling with?(%)
• Although 43% came on their own, a majority of visitors, 57%, came in groups of two or more.
• Those who were travelling in groups were predominantly with colleagues, 28%, followed by those travelling with friends 25%.
• It is also important to note that there were schools and institutions of higher learning that are inculcating the importance of the fair among learners by bringing
them to the fair.
• This could help kick start opportunities to network, get business ideas and increase knowledge of modern technology among learners.
Have you ever been to the fair in the past? If Yes how many times?
n = 201
Visitors expectations
62
31%
58%
11%
What are you looking forward to in this year's Fair?
Seeing more exhibitors
Learning more
Other (specify)
• The highest number of visitors were looking forward to increasing business knowledge at the 2012 Durban Business Fair.
• The 11% who attested that they were at the fair for other reasons were between 16 – 24 years old; they were there for fun, to have a time
out and meet new people.
• This shows that the fair should not only be a strictly business event it should also cater for those seeking fun, If possible, visitors should be
entertained whilst being exposed to opportunities to network, learn, see high quality goods & services and get business ideas.
n = 201
Rating the fair – to what extent did it meet expectations
63
87
75
69
0
70
66
71
89
8
19
19
0
22
24
19
8
4
5
12
100
8
10
7
2
0
0
0
0
0
0
2
1
1Convenience of location of location of the Durban
Business fair
Communication about the Durban Business fair
Timing of the business fair during the fair
Safety /security at the fair
An evaluation of the stands
Adequate & secure parking
Adequate amenities
Entertainment
% rating
High(8-10) Medium(5-7) Low(1-4) Don't know
• The fair generally met the people’s expectations, it looks
like they have accepted the ICC as the home of the fair.
• The timing was ideal as the fair took place over the
weekend and spilled over to Monday which was a holiday.
• A major concern for visitors is safety and security with
100% giving this a low (1-4) rating out of 10
• The municipality should improve on safety particularly
the major roads around the Fair. If there could be traffic
officers controlling cars in these places, people would feel
more safe.
• Other issues with over 30%, low to medium ratings, are
parking and the timing of the fair
Average
n = 201
9.1
8.5
8.5
2.5
8.3
8.6
8.2
9.3
Number of days spent at the fair
64
71%
22%
5% 1%
1 2 3 4
Number of days spent at the fair
30%
21% 23%26%
1 to 2 hours 3 to 4 hours 5 to 6 hours Whole day
Approximate time spent at the fair
• Although a majority of visitors came for a day, it is also important to note that there are some who came for two days and some came throughout the
fair.
• It seems as if people are taking the fair as a serious business initiative . It can also be seen from the number of hours they spend at the fair where 70%
said they spent 3 hours or more at the fair.
• This could indicate the visitors’ appetite to network and to get business ideas.
• It was also observed that some of the visitors were networking and exchanging contacts with the Exhibitors which is in line with the objectives of the
Fair.
n = 201
For how many days did you attend the Durban Business Fair? For how long were you at the fair per day approximately?
Other areas visited
65
• Besides visiting the fair, 17% said they also visited the beach, 33% visited the shopping malls and 24% visited uShaka Marine as well.
• Visitors also confirmed that they spent some money on other items outside the fair. This included buying clothes, others went to the movies and some bought art and craft products.
Did you visit any places of entertainment during the period of Durban Business Fair?
n = 201
17%
33%
14%
Beach Shopping Malls Ushaka
Visited
Amount spent by 201 respondents
R 925 R 21,741 R 4,088 R 26,754
Extrapolate to 12 233 visitors R 60,898 R 1,431,337 R 269,137 R 1,761,372
23%
4%
21%
Clothes andaccessories
Movies / theatre Arts and Crafts
Purchased
R 11,663 R 2,040 R 8,746 R 22,449
R 767,843 R 134,305 R 575,800 R 1,477,948
Likes and dislikes
66
51
46
34
51
31
31
34
Entertainment
A variety of exhibitors
Ideal exhibitors
Set up
Information
A good family venue
Security
Is there anything you liked about the fair
3
1
5 5
3
9 9
Is there anything you disliked about the fair
• Visitors liked most of the activities at the fair especially the general set-up, the entertainment and the variety of exhibitors.
• There are however some areas which had lower levels of likes. Provision of information, a family friendly venue and security had lower levels of likes indicating that these are some areas where the show can be improved.
• Some respondents also expressed dislikes for parking and public amenities, which can also be evaluated for improvement.
• Although there was ample parking space, it could possibly be slightly cheaper.
• Respondents also felt that some people could ignore using the fly-over/ pedestrian bridge to cross the road and end up risking being knocked down by cars.
n = 201
During the 2012 Durban Business fair, what did you like most and what did you dislike most?
Benefits of the fair
67
39%
21% 17%
53%
Networking Marketing Technology Knowledge
Benefits derived
• Clearly the main benefit that visitors derive from the fair is gaining knowledge. This could encompass a variety of aspects related to products or services of exhibitors that could benefit visitors in their own businesses or in their personal capacities. Respondents could also be referring to knowledge in the sense that it provides them with new or innovative business ideas.
• Visitors should be helped to understand what is networking & marketing and its importance in business.
• If possible, tertiary students and other people visiting the fair in their private capacity should be provided with information on how they can create business relationships and generate business opportunities.
• If they are not already attending, some tertiary students aspiring to become entrepreneurs should be encouraged or invited to attend the business conference as well.
• The municipality could consider introducing latest gadgets such as touch screen centres to get more information about the exhibitors.
• This will give more information about the exhibitors and reduce pressure on face to face discussions.
What benefits did you derive from the Durban Business Fair
n = 201
Evaluating the fair
68
82 8070 76 77
18 1927
22 23
0 0 2 2 0
Platform tonetwork
Promotes BEE Creates jobs Upliftment ofwomen
PromotesSMMEs
Evaluating the fair
Disagree (1-4)
Neither agree/disagree (5-7)
Agree (8-10)
• Generally the visitors agreed that the fair met its objectives, based on the number of SMMEs and the black owned companies the fair was seen to be promoting previously disadvantaged people.
To what extent do you agree or disagree with the following statements about the Fair
n = 201 8.4
8.2
8.0 8.1
8.3
Visiting stakeholders
69
35
10 6 921 26
65
90 94 9179 74
SEDA Ntsika Khula Apex IDC Umsobomvu
Stakeholders visited
Did not visit
Visited
• Although a majority of visitors did not visit any stakeholders, there are some who did visit them and the most visited stakeholders were SEDA, Umsobomvu and the IDC.
• These stakeholders play an important role in empowering businesses, providing business development & support services, promotingeconomic growth and industrial development.
• The municipality should consider providing a map showing where exhibitors are located in the exhibition hall; this will help visitors find various exhibitors and if possible exhibitors should be grouped by sector to allow people to locate businesses in the same sector.
Which of the following stakeholders did you to see/talk to at the fair?
n = 201
Plans for next year
70
96%
4%
Likelihood to visit the Fair in 2013
Yes No
• 96% said they will visit the show next year and 4% said they will not visit the show.
• This information shows a high level of satisfaction with the show and the facilities and exhibitions. This together with the factors that
respondents indicated they particularly liked, indicate that there are many aspects that should be retained in future shows and that can
leveraged again to ensure the future success of the show.
Will you visit the Durban Business Fair in 2013?
n = 201
Conclusions
71
Companies were able to showcase their products and services;
The fair and the conference enabled companies to network with local and international companies such as companies from Libreville
and Zimbabwe;
On meeting other businesses, businesses with branches in other provinces and speakers from various organisations exposed the
exhibitors to various ways of marketing and opportunities available;
The fair attracted 13 223 people including learners, people coming in their private capacity and some representing their companies
Most people were happy with the location of the fair as it is in the Central Business District. They said the conference and the fair were
well organised and respondents were generally happy with the topics covered in the conference
Respondents need to be fully informed about the objectives of the fair and the conference, follow up sessions should be considered to
teach respondents networking and marketing so that they feel that they get full value for money.
The fair also generates income to other businesses in the surrounding areas
Not many exhibitors generate substantial new business immediately at the fair. Some do not use the opportunity to network effectively
and some delay in doing follow ups.
However based on the follow up interviews after a few months, it is apparent that, for many exhibitors, new business as a result of the
fair is eventually generated, particularly where exhibitors follow up with contacts made. This seems to differ quite widely by exhibitor,
with some generating quite substantial sales and others small amounts only.
QRS Recommendations
72
The fair should be an experience, exhibitors should be encouraged to improve on their stands and give them life;
Conference attendees and the exhibitors should be taught networking and marketing skills for them to get more value from the fair;
The municipality should improve on entertainment at the fair and the number and types of food outlets should also be improved as this will
make people spend more time at the fair.
A careful analysis should be made on the type of businesses that exhibit at the fair in order to advertise it to the correct target market.
The speakers must bring with them relevant forms or documents or even take people through the completion process and inform them about
the doors likely to be opened by the forms.
Visitors should be fully informed about the objectives of the fair for them to know what is expected from them as some see the fair as a flea
market
The major businesses in the surrounding areas should also be encouraged to exhibit or advertise at the fair.